Last week the pair significantly fell after Mario Draghi’s statement that the ECB could extend its QE program for additional stimulation of the eurozone economy.
The pair is supported by positive data on key indices from Germany and poor statistics on the construction sector in the US that came out on Monday. Furthermore, the Fed’s decision on interest rates is due tomorrow that could significantly pressure the USD if the rate remains unchanged and no comments regarding a date of the increase are given.
Today pay attention to key releases from the US and data on Durable Goods Orders. Also on Friday attention should be paid to the Consumer Price Index from the eurozone that might support the Euro if comes out better than forecasts.
Support and resistance
On the daily chart, the pair is moving along an ascending channel and is currently trading at its lower border. The most likely is the pair’s growth towards the upper border of the channel at the level of 1.1540.
Support levels: 1.1020, 1.1000, 1.0920, 1.0860, 1.0820, 1.0775, 1.0710, 1.0660.
Resistance levels: 1.1075, 1.1135, 1.1165, 1.1215, 1.1255, 1.1280, 1.1320, 1.1385, 1.1450.
Long positions can be opened from current prices and from 1.1000 with targets at 1.1200, 1.1400, 1.1540 and stop-loss at 1.0970.